Just as with the other Southern African Development Community (SADC) countries, Mozambique faces severe and interrelated problems of energy and environment linked with the massive consumption of fuel wood biomass[1] The conventional power grid provides less than 10% of the energy needs for the country's 22 million inhabitants (see Table 1 and 2 below). The electrification rate is estimated at 20% of urban areas and 1-2% of rural areas [2]. About 85% of the energy consumed in the country comes from biomass[3].

Mozambique has vast renewable energy (RE) resources that can play an important role in the process of development of the country. Mozambique is well endowed with resources, but lacks national skills, financing and incentives, as well as diversified suppliers for rapid internal development of this potential. The role of external funding and technical assistance will thus remain important for many years to come for the successful development and modernization of the energy sector.

Mozambique has undertaken a restructuring of the energy sector to create more modern management of its energy resources. The national power utility has been transformed into a state company; a regulator has in principle been created; a national fund to promote rural energy through innovative activities, private sector engagement and an enhanced role for local authorities is in place; links to the Southern Africa Power Pool have been established; and the Ministry is trying to strengthen its policy development and oversight functions. A draft RE policy has been elaborated. While recognizing the RE potential of Mozambique, the policy acknowledge the need for in-depth RE surveys, the need to implement energy efficiency and practices and to subsidized the RE sector. The draft policy also emphasize the key role of the National Energy Funds (FUNAE), an autonomous body of the Ministry of Energy, in the development of the RE sector. This body is now a prominent and key actor of the RE market. The Mozambican legal framework[4] allows for privately owned power facilities but there is no “feed-in-tariff” scheme in place. However private investments in facilities are still very limited.

The RE sector in Mozambique is still in its infancy with very few stakeholders involved and comprehensive information about planned projects is scarce. The present report presents an overview of the RE potential in Mozambique, a list of ongoing or planned RE and energy efficiency projects, a list of potential benefiters for such projects and a detailed contacts list and description of organizations involved in the development and promotion of RE and energy efficiency in the country.

[1] Maputo has an estimated 1.2 million people (2005) and 75% of Maputo population use charcoal. The average charcoal use of a typical Maputo family was found to be 70kg per week (GTZ, Mozambique Energy Profile)

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